This is a passive ETF that tracks an MSCI North America subset index. It holds large-cap and mid-cap stocks listed in the US and Canada in line with market capitalization, while also applying a screening process that filters out climate impact and involvement in controversial businesses.

It suits long-term investors who want to diversify across all of North American equities at once, rather than just one country, the US.

It is an ETF managed by Fidelity using a passive (index-tracking) approach.

Rather than replicating every index constituent in full, the fund follows index performance through a sampling technique. In the process, it reduces the weight of stocks with a large climate impact and those involved in controversial businesses. Most of its assets are allocated to North American large-cap and mid-cap stocks.

• Diversifies at the North American level by adding Canada to the US
• Combines climate and controversial business screening with index tracking
• Passive structure with a low fee burden

Assets under management (AUM) stand at $2.2B, and the expense ratio is 0.09% per year.

Even with the same North American exposure, this fund differs from a US-only core product in whether Canada is included. Because screening criteria are applied, there are also periods when performance diverges from a pure market-cap-weighted index.

Because it follows North American large-cap stocks directly, its performance moves almost in step with the direction of the index. Given the North American market's heavy weighting in technology stocks, there are recurring periods when volatility widens depending on interest rates and earnings seasons.

North American equities often sit at the core of global asset allocation, so capital inflows tend to be steady. However, products with a short listing history may have thin trading volume, so it is safer to check the bid-ask situation first when trading.

Its strength is holding all of North America at a low fee, and its weakness is that a short listing history means trading and distribution information is still thin.

If you are looking for a North American equity core holding, products such as VTI or ITOT, which cover the entire US market, are the first candidates for comparison. These two products exclude Canada and hold only the US, but they have longer track records and deeper trading. If you want to widen the scope to developed and emerging markets, you can compare it with ACWI and similar products. This ETF can be viewed as a structure that adds Canadian inclusion and screening criteria on top of those.

Here are the items to check before investing. Although it is a North American core product, it is best to weigh holding costs, trading conditions, distribution policy, and currency effects individually before buying.

With a large weighting in North American large caps, the fund moves along with the index during technology stock corrections. You should also take into account that, with a short listing history, tracking error and distribution patterns have not yet built up sufficiently.

It suits long-term investors who want to hold North American equities through a single product. Check trading volume and distribution policy against official materials right before buying, and if you only want US exposure, we recommend comparing it with products such as VTI before choosing.